Saudis threaten retaliation if sanctioned
DUBAI, United Arab Emirates — Saudi Arabia yesterday threatened to retaliate for any sanctions imposed against it after President Trump said the oil-rich kingdom deserves “severe punishment” if it is responsible for the disappearance and suspected murder of Washington Post contributor Jamal Khashoggi.
The warning from the world’s top oil exporter came after a turbulent day on the Saudi stock exchange, which plunged as much as 7 percent at one point.
The statement was issued as international concern grew over the writer, who vanished on a visit to the Saudi Consulate in Istanbul over a week ago. American lawmakers threatened tough punitive action against the Saudis, and Germany, France and Britain jointly called for a “credible investigation” into Khashoggi’s disappearance.
Turkish officials have said they fear a Saudi hit team killed and dismembered Khashoggi, who wrote critically of Saudi Crown Prince Mohammed bin Salman. The kingdom has called such allegations “baseless” but has not offered any evidence Khashoggi ever left the consulate.
Already, international business leaders are pulling out of the kingdom’s upcoming investment forum, a high-profile event known as “Davos in the Desert,” and the sell-off on Riyadh’s Tadawul stock exchange showed that investors are uneasy.
The exchange dropped by over 500 points, then clawed back some of the losses, ending the day down 264 points, or more than 4 percent. Of 188 stocks traded on the exchange, 179 ended the day with a loss.
In an interview scheduled to air last night, Trump told CBS’ “60 Minutes” that Saudi Arabia would face strong consequences if involved in Khashoggi’s disappearance.
“There’s something really terrible and disgusting about that, if that was the case ...” Trump said. “We’re going to get to the bottom of it, and there will be severe punishment.”
In a statement published by the state-run Saudi Press Agency, the kingdom warned that if it “receives any action, it will respond with greater action, and that the kingdom’s economy has an influential and vital role in the global economy.”